Two rounds of hydrogen project auctions have so far been conducted under the EU Innovation Fund. In the latest round, three maritime projects were selected—all from Norway—with a total funding allocation of €97 million. A third auction round is scheduled for this fall.

To accelerate the transition to a climate-neutral energy system, the EU is investing in renewable hydrogen. Through the Innovation Fund—financed by the EU Emissions Trading System (EU ETS)—the Union supports the commercial development of low-carbon technologies.

A key tool in this initiative is the European Hydrogen Bank, which has introduced a new model using competitive auctions where producers bid for support based on the lowest requested compensation per kilogram of hydrogen. Interest has been strong: the first pilot auction in 2023 attracted 132 bids from 17 countries. The second round, which concluded in May 2025, received 61 bids — amounting to four times the available budget of €1.2 billion. Three maritime bids were selected, all from Norway, receiving a combined €97 million in support.

Ahead of the third auction round this fall, the H2AMN project has compiled an overview of the role hydrogen auctions play in developing a European hydrogen market.

“These are reverse auctions, where funding is awarded to the bidder requesting the least support per project. Swedish projects have participated but have not yet submitted competitive enough bids to be selected,” says Karl Jivén from IVL Swedish Environmental Research Institute, who has analyzed the topic as part of the H2AMN project.

For the Nordic maritime sector, the EU’s hydrogen initiatives could be decisive for future fuel supply. The region has favorable conditions, with low Levelized Costs of Hydrogen (LCOH) and an almost entirely fossil-free electricity grid. Since the Nordic countries are already at the forefront of fossil-free energy solutions, there is significant potential for regional players to benefit from upcoming hydrogen auction support, the researchers note.

“We believe that those planning hydrogen production are already aware of the upcoming auction. Our summary is therefore less about raising awareness of the auction itself, and more about providing a broader perspective and analysis of developments in the sector,” says Karl Jivén.

The budget for the third auction round is €1 billion and will promote the use of the Commission’s new funding platform, Auctions-as-a-Service (AaaS). This platform enables EEA countries to allocate their national funds more efficiently, fostering the development of a unified European hydrogen market. AaaS also allows for the use of unspent EU funds.

The summary also highlights the support available in Sweden for companies looking to participate in EU initiatives. Through the EU SME Support program, coordinated by RISE, small and medium-sized enterprises can receive individual guidance in applying for EU funding, including assistance with agreements and reporting.

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